mortgage and letting out property

sheilanick

We have fixed rate deal with The Derbyshire. Under special conditions of original mortgage offer it clearly states ' the rate of interest is fixed at .... and we will not be able to vary it under the provisions for variation contained in your mortgage." Seems pretty clear.

Now 4 year later we are going abroad with work and want to let our house for 3-5 years whilst away. The mortgage company has said that they will load the mortgage rate by 1%. Given the special conditions above, can they legally do this ? ( oh and to complicate matters, the derbyshire was transferred to the Nationwide a couple of years ago, don't know if that makes a difference...)

thank you

KarenBB

If someone was letting out their property and they're on a fixed rate Nationwide have back tracked and they won't get charged an additional rate as you were pretty much stuck. You either had to stump up the extra 1.5% or pay an early repayment charge to leave Nationwide.

Anyone on a fix rate applying to let now would have to pay the extra. Now you have the choice let your property and pay the loading or don't let the property. So my guess would be you will have to pay the extra. If work are causing you to be out of pocket you could ask them to pay the extra

kingstreet

the provisions for variation contained in your mortgage

Have you had a look at what these provisions actually say?

I imagine these will tell you under what conditions your rate could be changed.